CBN: Nigeria generated N799bn oil revenue in Q1 2022 — down by 28%

The Central Bank of Nigeria (CBN) says the country generated N799.10 billion from oil sector in the first quarter of 2022. 

The figure represents a 28.3 percent decline from N1.11 trillion in the fourth quarter of 2021. 

While oil revenue amounted to N799 billion in three months, TheCable has reported that petrol subsidy payment gulped N675 billion same period.

The apex bank said this in its economic report for the first quarter of 2022.

Oil revenue comprises crude oil and gas exports, petroleum profit  tax and royalties, and domestic crude oil and gas sales, among others. 

The figure was 66.4 percent below the projected revenue. 

On the other hand, non-oil revenue in the quarter under review was N1.73 trillion, a 0.13 percent increase from N1.72 trillion in the previous quarter. 

However, the figure was 22.1 percent below projected earnings in Q4. 

“The uptick in earnings, relative to 2021Q4, was attributed, largely, to a significant increase in collections from value-added tax and federal government independent revenue,” the report reads.

“Improvement in these revenue components underscored the intensification of non-oil revenue drive through broadening the tax net and plugging of revenue leakages, particularly, in government-owned enterprises (GOEs).”

The report added that non-oil revenue accounted for 68.4 percent of the total federation account remittances, while oil revenue contributed 31.6 percent to federation account collections. 

“Federation account operations receipts into the federation account declined by 2.5 per cent and 45.0 percent, relative to the preceding quarter and target, following a sharp decline in oil revenue sources,” the report added.  

“Gross federation receipts in 2022Q1 amounted to N2.530.49 billion. This compares with N2.594.26 billion in 2021Q4 and the benchmark of N4.598.25 billion.”   

The apex bank said the observed drop in federation receipts was triggered by the decline in all components of oil revenue. 

It said the fiscal deficit of the federal government was N1.6 trillion, 11.8 percent below the level in the previous quarter. 

“At N1.617.84 billion, the provisional fiscal deficit of the FGN was 11.8 percent below the level in the preceding quarter, but overshot the quarterly target of N1.596.52 billion by 1.3 percent,” it said.